The Securities and Exchange Board Of India (SEBI) has introduced new rules for the commodity options. It would allow one commodity option per exchange on a pilot basis.

Exchanges would be submitted at the proposal for the product they wish to launch. The agricultural commodity it would be based on the average turnover of Rs.200 crore.These commodities were in the top five exchanges daily turnovers.

These rules, which should be allowed for the settlements of the options by the physical delivery or by cash. After the changes in the rules, commodity exchanges which should introduce options and had future contracts were underlying. It is also introduced that the option contracts that would be converted to the fitter on the day of expiry.